Increasingly, the appeal of virtual coins has been transcending demographic lines. As a reasonable portfolio strategy, it’s gaining wider acceptance among both individual and institutional investors. “Baby boomers and Gen X, who own most of the world’s wealth, are embracing the cryptocurrency revolution,” says Green, adding this will serve to further bolster cardano prices in the longer term.
Zagari cautions, though, that the crypto market’s hyper growth comes with extreme volatility. It’s the nature of the beast. “If you do not need to access these funds for at least five years, cardano is worth the consideration for your portfolio,” he says.
As for the portion of your portfolio that could be allocated to cardano, that would depend on how much of it you are comfortable keeping immovable or illiquid for a few years. “For most investors, that number should not exceed 10% of their total portfolio,” Zagari notes.
Buying cardano with CAD
For buying cardano, or any cryptocurrency, a brokerage platform or a crypto exchange remain the two most popular options. Canadian investors looking to gain exposure to cardano have a few choices in their own backyard. They could purchase ADA directly through one of Canada’s homegrown crypto exchanges—CoinSmart, Newton, Wealthsimple, NDAX and others—that facilitate buying and selling multiple crypto assets, including ADA, in Canadian dollars.
There are some non-Canadian trading platforms—Crypto.com, Binance and Kraken—that support crypto purchase via an assortment of fiat currencies, including CAD.
Zagari warns: “Canadian investors cannot hold cardano inside their TFSA, RRSP or non-registered investment accounts. The easiest and safest way to buy/hold and convert crypto to other crypto holdings is through an exchange.”
For personalized custody, cardano can be stored in a local software or hardware-based wallet. Indeed, some investors prefer the additional layer of security by moving their digital coins to cold storage—an offline safeguard with private keys to your assets.
No matter your preferred means of cardano purchase, you must understand the risk inherent in crypto ownership and diligently weigh the risk of loss of investment versus the potential payout before hitting the “buy” button.